Large & Mid Cap Funds are open ended equity schemes investing in both large cap and mid cap stocks. These mutual funds can select stocks for investment from the largest 250 stocks listed in the Indian markets in terms of market capitalization.
Minimum investment in equity & equity related instruments of large cap companies (1st to 100th company in terms of full market capitalization) – 35% of total assets
Minimum investment in equity & equity related instruments of mid cap stocks (101st to 250th company in terms of full market capitalization) – 35% of total assets
The minimum investment varies from scheme to scheme. It could range between Rs.100/ – to Rs.5,000/-.
Investors who are looking to invest for at least 5-7 years and looking for high returns. At the same time, these investors should also be ready for the possibility of moderate to high volatility in their investments. It is recommended to use systematic investment plan (SIP) for recurring monthly investments or systematic transfer plan (STP) for investing lumpsum in these funds.
Large & Mid Cap Funds receive the same tax treatment as other equity funds.
• Short term capital gain (less than one year): 15% of gain
• Long term capital gain (more than one year): 10% of gain in excess of Rs. 1 lakh per year